Vietnam’s FDI Surges to $4.33 Billion in January, Led by South Korea

Vietnam’s FDI Surges to $4.33 Billion in January, Led by South Korea

Tuesday, 04 Feb, 2025

Vietnam kicked off 2025 with a strong surge in foreign direct investment (FDI), reaching $4.33 billion in January—a 48.6% increase from the same period last year. Despite a slower start in new projects, additional investments and stake acquisitions skyrocketed, highlighting growing confidence from foreign investors.

South Korea Takes the Lead

South Korea emerged as the top investor, committing over $1.25 billion, a 13.4-fold jump compared to January 2024. Singapore followed closely with $1.24 billion, while Japan, mainland China, and Hong Kong rounded out the top five.

In terms of new projects, mainland China ranked first, accounting for 30.1% of all fresh investments. However, South Korea dominated in expanding existing projects (19%) and stake acquisitions (25.4%), signaling long-term commitments.

 

Manufacturing Dominates, Real Estate Slows Down

The manufacturing and processing sector remained the biggest magnet for foreign capital, securing $3.09 billion, nearly 71.3% of total FDI and doubling last year’s figure. In contrast, real estate investments dipped slightly to $1.09 billion, down 6.4%.

 

Investment Hotspots: Bac Ninh Leads

Among Vietnam’s provinces, Bac Ninh attracted the most investment, securing $1.39 billionsix times higher than last year. Dong Nai followed with $959 million (a 3.4-fold increase), while Hanoi pulled in $716.4 million, up 1.9%. Ho Chi Minh City remained the top destination for new projects, capital expansions, and stake acquisitions.

 

FDI Driving Trade Surplus

Vietnam’s FDI sector recorded a $3.2 billion trade surplus, helping offset a $1.97 billion deficit from domestic businesses. This contributed to an overall national trade surplus of $1.23 billion for the month.

 

Strong Momentum Despite Fewer Large-Scale Projects

The number of new projects was lower than in January 2024, mainly due to fewer large-scale investments and the impact of the New Year and Lunar New Year holidays. However, capital expansions surged by 509.6%, and stake acquisitions rose by 70.4%, compensating for the shortfall and driving overall FDI growth.

As of January 2025, Vietnam had over 42,000 active FDI projects, totaling $505.4 billion in registered capital, with $324 billion already disbursed.

With strong reinvestment trends and growing investor confidence, Vietnam continues to solidify its position as a key destination for global capital.

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